How Blockchain Technology use for Handling worst climate action
Over the last
few years, blockchain has been gaining popularity across a variety of
industries. Basically, a blockchain is a digital, decentralized database that records
information in a way that makes it difficult or impossible to change which allows
seamless data flow in a secure manner. It is a digital ledger of transactions
that is duplicated and distributed across the entire network of computer
systems on the blockchain.
Blockchain technology has inherent security features due to which it is used in the financial sector but gradually technology is being used in other sectors to leverage its full potential. The important factor for developing strong climate action programs and policies is to make sure that climate data is correctly and transparently attributed. Through blockchain, this can be done as it can securely track and share data indicating that it has the potential to significantly influence the way climate change is addressed.
A multi-stakeholder group of organizations led by the United Nations Climate Change Secretariat formed an open global initiative called the Climate Chain Coalition at the 2017 Paris Summit, expressing its early support for blockchain technology.
A new report, titled Managing Climate Change in the Energy Industry with Blockchains and Oracles published focuses on analyzing the importance of the blockchain sector taking a leading role in the transition from fossil fuels to clean energy. As per the study, the use of clean renewable energy can be sped up by using blockchain applications which in return will help the energy sector to solve broader issues related to climate change. The Blockchain is used for the database, Smart contracts that can help to create key applications, and oracles can add to the uses by providing the bridge needed to securely share the climate data.
Implementing blockchain tech can be done through carbon credits, tokenization of energy commodities, and contracts for parametric energy conversion as per a report given by researchers from Chainlink Labs and Tecnalia. Chainlink Labs’ managing director William Herkelrath said in a press release “By using Chainlink to bridge some of the highest-quality climate data in the world onto blockchains for energy and climate initiatives, we can give the clean energy sector the tools it needs to expand its impact.“
United Nations Climate Change Conference is known as COP26 which took place in November 2021 in Glasgow, Scotland requested to reduce carbon emissions. In order to achieve net-zero by 30 years, many have turned to blockchain technology, purchased carbon offsets, and become interested in carbon capture once again. According to United Nations Environment Programme (UNEP) transparency, clean energy, carbon markets, and climate finance are areas where blockchain technology can speed up climate action.
The Middle East and North Africa (MENA) Climate Week event, which was followed by the Blockchain4Climate networking event, brought together blockchain stakeholders in the MENA region to shape a common understanding of the technology's potential for supporting countries with climate action. The stakeholders include UNEP, the International Association for the Advancement of Innovative Approaches to Global Challenges (IAAI GloCha), and the United Nations Economic and Social Commission for Western Asia.
The digital asset industry required high energy consumption, platforms are transitioning to more sustainable energy and consensus mechanisms. According to Algorand, its blockchain is entirely carbon neutral. On carbon-negative blockchain platform Celo, Kickstarter is creating a crowdfunding platform. SavePlanetEarth is setting up certified Carbon Credit Smart nonfungible tokens (NFT) on Phantasma which is a green blockchain for developers order to build their decentralized applications. Additionally, Polkadot has been highlighted as a climate-friendly blockchain.
A survey was done by Climate Ledger Initiative (CLI), where respondents highlighted renewables, clean energy, and supply chain management as the largest untapped focus areas. There are many ways blockchain can ensure better climate governance, one important use is the capability to boost global cooperation.
CBW - External Analyst